Mexico: COFECE detects barriers to competition in Puerto Progreso

Following a two-year investigation, Mexico’s Federal Commission of Economic Competition (COFECE) has determined that there are insufficient conditions for free competition in the bulk unloading of agricultural products in the major southern port of Puerto Progreso, Yucatan, causing increased costs for users and for final consumers.

“At the conclusion of the research stage, it was found that there is only one operator in the specialized terminal for agricultural bulk, Multisur, whose market power generates anti-competitive effects that could harm users and consumers,” the Commission explained.

“Multisur exerts the market power that it has in the unloading of agricultural bulk over the mediation services for maritime transport …” leading to the collection of tariffs up to 21 percent higher than what is negotiated with shipping companies. The company is also accused of simulating delays in off-loading cargo to improve its rates, and of exercising price discrimination without justification.

The COFECE urged for a study to be carried out in which the real off-loading speeds for agricultural bulk are determined, so that the Progreso Integral Port Administration (API Progreso) may properly monitor the speed and rate of the service.

Full Content: El Financiero